There is a dire need for social entrepreneurs to get mentoring and coaching from more experienced entrepreneurs who have negotiated the fundraising landscape, according to Ashleigh Sibanda, programme manager: business incubation at business growth specialist Fetola.
Sibanda told the SowetanLIVE that more than 50% of social entrepreneurs have less than five years’ relevant experience before they start their enterprises.
To make it easier on small business owners, SME South Africa has compiled a list of funders that support social enterprises.
The different types of funding for social enterprises include grant funding, debt funding, quasi-equity funding, and equity funding, according to A Guide to Finance for Social Enterprises in South Africa by the International Labour Office.
Here are several organisations that offer funding and business support to social entrepreneurs:
Barloworld Mbewu Intake
This programme considers technology startups and social enterprises that involved in the agriculture, industrial services, green economy, creative industry and social innovation. Businesses entering this programme must have at least been operating for 12 months and be run by South Africans.
SAB Foundation’s Tholoana Enterprise Programme
The two-year business support programme provides seed-funding and assistance with access to markets to small businesses. Their primary focus is to provide opportunities for small, medium and micro-sized enterprises owned by women and youth, people in rural areas, as well as persons with disabilities.
Bridges for Enterprise
Social enterprise startups that have already started their operations can apply to enter this six to 12-month incubation programme. It is free of charge and provides exclusive access to advisory services. The aim is to assist social enterprises that are looking to expand or modify their business model.
Innovation Edge’s Open Call for Malnutrition Solutions
One of Innovation Edge’s initiatives is identifying malnutrition solutions, which is applicable to innovators, registered non-profit and for-profit enterprises. The programme provides funding and non-financial support to successful applicants to help them develop, test and implement their solutions.
SAB Foundation Social Innovation Awards and 6th Annual Disability Empowerment Awards
This competition is open for social entrepreneurs and social enterprises to apply. The prize money ranges from R200,000 to R1.3-million which can be used to be invested in the innovation or the business. Business coaching and technical support will also be provided to winners.
Social Entrepreneurship Impact Lab (SEIL) programme
FNB Bank, in partnership with Fetola Business Growth Professionals, ran the 2021 Social Entrepreneurship Impact Lab™. The initiative is broken into two phases – a 12 months of business growth support and an intro to Investment Readiness, and secondly, six months of intensive Investment Readiness & growth acceleration. The criteria include that businesses should be 51% black owned and have an annual turnover not exceeding R10m.
Impact Amplifier’s LEAD Impact Capital
Institutional capital will be provided to post-seed social enterprises that are looking for their first round of significant funding (as a bridge to Series A funding). Their requirements include social enterprises should be based in Africa and are looking for an investment requirement of between $80,000 – $10 million.
The Global Bridging Fund for Social Entrepreneurs
Social entrepreneurs based in Asia and Africa can apply for ‘The Global Bridging Fund 2022’. There are seed funding opportunities available that are worth $5000 for each as a 0% interest loan. The benefits of this initiative include access to global investors and marketing opportunities through crowdfunding.
